Cross-business strategic fit in a diversified enterprise is not normally achieved when
A. a company can transfer its brand-name reputation to the products of a newly acquired business and add to the competitive power of the new business.
B. the management know-how accumulated in one business is transferable to the other.
C. two businesses present opportunities to economize on marketing, selling, and distribution costs.
D. related diversification produces a synergistic performance outcome.
E. the value chain activities of unrelated businesses possess economies of scope and good financial fit.
Answer: E
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